Property and Casualty Insurance EXAM Questions and Answers 100% Pass

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Property and Casualty Insurance EXAM Questions and Answers 100% Pass Specific insurance ✔✔This type of insurance designates a particular item to be insured Blanket insurance ✔✔This type of ... insurance covers more than one item of property at a single location or one more items of property at multiple locations. Speculative ✔✔possibility of both gain and loss. Not insurable. Pure ✔✔only the possibility of loss. Insurable. What are the 5 methods of managing or handling risk? ✔✔avoid, control, retain, and transfer risk. Hazard ✔✔A condition or situation which increases the chance for loss Physical Hazards ✔✔a hazard that arises from the condition, occupancy, or use of the property itself. ex: skateboard left on the steps Moral Hazards ✔✔when an individual through carelessness or by irresponsible actions can increase the possibly for a loss. ex: person who drives carelessly just because they know they are insured. Morale Hazards ✔✔when a person might create a loss situation on purpose just to collect from the insurance company. ex: Prearranged, faked theft of someone's old vehicle so they can get an insurance payout to buy a new vehicle. Replacement Cost ✔✔The amount of money it would take to replace a damaged or destroyed item with one of like kind and quality AT THE TIME OF LOSS. No deduction for depreciation. Actual Cash Value (ACV) ✔✔Replacement Cost, minus depreciation. Pair and Set Clause ✔✔Loss to one item of a pair or set does not constitute loss to the entire pair or set. Appraisal ✔✔A method of resolving disputes b [Show More]

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